29th Oct 2015 09:18
LONDON (Alliance News) - Goldplat PLC shares rose on Thursday after it said it has kicked started its new financial year by return to profitability in the first quarter.
Goldplat shares were up 3.8% to 3.76 pence per share on Thursday morning.
The gold miner reported a GBP415,000 operating profit in the first quarter of the financial year from its subsidiary, Goldplat Recovery Pty Ltd, which recovers gold from by-products in South Africa.
Its gold recovery operation in Ghana returned to profitability in the quarter after producing a GBP156,000 operating profit. However, this profit was partially offset by the Kilamepesa mine generating a GBP115,000 operating loss in the period.
That suggests the company has made an overall operating profit of GBP456,000 in the first quarter of the financial year.
The company did not break down its earnings on a quarterly basis last year, but in the first half of the last financial year it produced a total operating loss of GBP694,000, suggesting the company's earnings have significantly improved.
"The return to positive cashflow is welcome and I would like to thank the management and operational teams for their hard work in achieving this turnaround. Whereas the financial results reflect the operational performances only, it is pleasing to report that, including all head office costs and costs associated with non-operating subsidiaries, the group was profitable during the quarter," said Chief Executive Gerard Kisbey-Green.
Goldplat said its South African gold recovery operation produced 6,141 ounces of gold in the first quarter, of which 4,983 ounces were sold with the remaining balance being transferred to clients by the way of metal transfers.
The company said it plans to increase the daily elution throughput capacity at the operation to 8.0 tonnes from 5.0 tonnes, which will allow it to process all of its stockpiled product before the end of 2015, which suggests production could rise in the next quarter.
Its gold recovery project in Ghana produced 2,797 ounces in the quarter, of which 3,086 ounces were sold in the period. It said the operation is now cashflow positive after increasing elution capacity and filling its pipeline. Goldplat said it is also looking to source material from South America to try and grow and diversify the business.
At the Kilamepesa gold mine, it produced 643.0 ounces of gold, of which it sold 611.0 ounces.
By Joshua Warner; [email protected]; @JoshAlliance
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